Deepak Subhash Mahale. B.Tech Mechanical, College of Engineering Pune Currently Working in Johnson Control India, Pune Division HVAC LOB, Operation Department.
Yuvraj Prakash Pawar. B.Tech Mechanical, College of Engineering Pune Currently pursuing M.Tech Degree.
2. BUSINESS MODEL:
Fig1: working model of Solar water heating using zeolite
3. CUSTOMER NEEDS/PROBLEMS: To get hot water with low or no cost for application such as in residential, industry and commercial sector. With zeolite technology which increase efficiency of existing solar water heater.
4. SOLUTION: The innovative business idea is Solar water heating using zeolite Hot water application sectors can be broadly classified in residential, industry and commercial sector. According to MNRE survey, the share of hot water usage in these sectors are 80% , 6% and 9% respectively. And remaining all other sectors share is 5%. 2
The working principle of our product is based on chemical reaction of zeolite. Zeolite goes in exothermic and endothermic reaction cycles to raise the temperature of water. When water comes in contact with dry zeolite, chemical reaction takes place and zeolite releases the heat. This heat is used to raise the temperature of water up to 50 to 60 degree Celsius, which is well enough for bathing and cooking purpose in residential sector. The reaction is reversible; means when heat is applied to wet zeolite endothermic reaction takes place and water get released which makes zeolite dry again. So the dry zeolite will be ready to heat the water again. The research shows that, zeolite retains its properties for number of cycles. The reaction goes something like this: ZEOLITE + WATER WET ZEOLITE + HEAT The system consists of Zeolite chamber, solar reflector, Zeolite, and Vacuum pump. The idea is to use solar heat to recharge (to make dry) the zeolite. As we have noticed that zeolite requires more heat (high temp) to recharge, around 100 to 200 degree Celsius. With alone solar heat we cannot recharge the zeolite up to the requirement. As we know the boiling temp of water is dependent on pressure. In this system we will be using the vacuum pump to reduce the pressure in zeolite chamber, such that the water will evaporates (boils) by the solar heat. This pump will work on electricity. Generally the running cost of vacuum pump will be very less as it will be running for only 15 minutes per day. We can be able to raise the temp of zeolite up to 50 to 60 degree Celsius. So we will maintain the pressure in the chamber such that water will boil at 50 degree Celsius. This recharging procedure is to be done when the water is not flowing through the chamber and preferably before the start of the day. At the time of hot water requirement, the water can be passed through the chamber of zeolite. Chemical reaction will take place and water will get heated.
a. Land rented 200000 (yearly rent) b. Building and ancillary civil work rented 100000 c. Plant & Machinery New machinery should be bought. Inventory of raw material required for at least 50 products. 500000 d. Electrical Installation Electrical Connection required as per machinery 25000 e. Fire fighting (both dry & wet) 20000 f. Water supply & ETP (if reqd) water connection can be taken from municipal corporation 10000 g. Miscellaneous items Eg. Pollution control eqpt ( if reqd), office equip. furniture, stationary, pc's required 50000 h. Contingencies
25000 i. Pre-project expenses including architects & consultant's fees and
20000 j. Margin for working capital
30000 3
Total estimated cost of the project (a to j) 980000
Working capital requirement for 100 product (approx monthly target) 1 Raw material 800000 2 Label, Packaging and transportation 100000 3 wages and salaries 100000 4 administrative expenses 40000 5 overheads 100000 6 Insurance 50000 7 Taxes 150000
Yearly Sale Target is 1000 Product. Aprrox product price will be 15000/- (all inclusive) 17000000 b. Expected Yearly Expenses Fixed Cost + Variable cost (12*(290000+1050000)) 16080000 c. Expected Yearly Profit 920000
Number of years to achieve Break Even Yearly Fixed Cost 3480000 Yearly Variable cost 12600000 Yearly Income 17000000 Gross profit 920000 Cost of the project 980000 Net Surplus after one year -60000 So in worst case scenario break even can be achieved in 1.5years or after 1500 products 4
6. MARKET SIZE Estimated breakup: Functional Solar Water Heater (SWH) Installation Till 2009
sector Million m2 Residential (80%) 2.108 Hotel (6%) 0.158 Hospital (3%) 0.079 Industry (6%) 0.158 Other (Railway+ defence + hostel + religious place, other) (5%) 0.132 Total 2.635
SWH potential under realistic scenario (cumulative million m 2)
7. DISTRIBUTION STRATEGY: At initial stage we start out official website make online advertising of product and then when market size expands we will start dealership program. Following steps which we will take for Distribution strategy.
8. PRODUCT PRICING: Approximate price of product will be 15000 Rs
9. COMPETITION: There are many solar water heater manufacturers such as Videocon, Tata power, Jain irrigation system, Sunray etc. but this is innovative product which does not exist in market. So it can be in new segmentation of water heater.
Contact details: Product Name: YUDEEP Solar Address @: yudeepsolar@gmail.com